Press Release
VIS Reaffirms Entity Ratings of Al-Karam Textile Mills (Private) Limited
Karachi, May 08, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Al-Karam Textile Mills (Private) Limited (AKTM) at ‘A/A2’ (Single A/A Two). Medium to long-term rating of ‘A’ reflects good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. Short-term rating of ‘A2’ indicates good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned rating remains ‘Stable’. Previous rating action was announced on April 15, 2025.
AKTM, part of the Alkaram Group, is a vertically integrated textile manufacturer with nearly four decades of operations. The Company produces a diversified range of yarns, fabrics, home textiles, institutional textiles, and garments for domestic and international markets. It maintains a strong international footprint through design studios and marketing offices in the US, UK, and Europe, supporting its export-led model. Domestically, its retail arm, Alkaram Studio (launched in 2010), has grown into a leading lifestyle brand with over 62 outlets across Pakistan.
The rating of the Company reflects its position as a leading textile exporter with fully integrated operations, a diversified product base, longstanding customer relationships, and continued support from the Al-Karam Group. Recent capacity additions are expected to support medium-term growth and operational efficiency. The capital structure remains leveraged, driven by higher working capital requirements and expansion-related borrowing, resulting in continued reliance on short-term debt. Although some moderation has been observed recently, leverage indicators remain elevated. Debt coverage and the liquidity profile remain adequate.
Going forward, the Company’s profitability profile is expected to benefit from a strong pipeline of orders with better margins, together with improved sourcing efficiencies and a gradual shift towards renewable energy, which is likely to reduce energy costs and support margin stability over the medium term.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf